The cost to the economy of an emissions trading scheme is being put at $80 billion. Leading economist Warwick McKibbin says that figure could go much higher if the Government achieves the carbon cuts it is targeting.

Moroccan authorities have arrested 35 members of a gang suspected of sending volunteers to carry out suicide bombings for Al Qaeda in Iraq or to join Islamist rebels in Algeria, the state news agency MAP said.

Tomorrow will not be the first time the Murray Darling water crisis has topped the agenda at the Commonwealth state COAG meeting. But now there is a new imperative, with scientists setting an October deadline to save parts of the lower Murray from acidification.

A Palestinian man has killed three people and injured dozens more by driving a bulldozer in a rampage in Jerusalem. Hundreds of people fled in panic as the bulldozer tore apart several cars before ramming a commuter bus.

The Prime Minister has warned backbencher Belinda Neal she could pay for her decision not to be interviewed by police over the Iguana Bar affair. Her husband, Labor Party powerbroker John Della Bosca, has been ordered by New South Wales Premier to talk to police.